Why Cyber Insurance for Lawyers Is No Longer Optional
In this digital age, it's not a matter of if your law firm will fall victim to a cyber attack; it's a matter of when. Lawyers are among the most vulnerable to data breaches and cyber crimes, given the sensitive nature of their files and the substantial financial rewards cyber criminals believe they can reap from these professionals. But with the right protections, a cyber attack doesn't need to ruin your practice.
Learn why cyber insurance for lawyers is no longer optional. Then, reach out to Gilsbar for a free, personalized insurance quote.
Why Lawyers Can't Overlook Cyber Insurance
Cyber insurance coverage assists law firms and other businesses with the steps involved in recovering from a cyber attack. First-party coverage can reimburse law firms for the direct financial impact of the attack. Third-party coverage protects them against liability claims made by those involved in the breach, a concern lawyers understand all too well.
This insurance can help you account for the costs associated with restoring your clients' data, recovering from downtime during a breach, investigating the source of the attack, and more. If you still aren't convinced, below are a few reasons cyber insurance for lawyers is a necessity.
Lawyers Are at Serious Risk for Cyber Attacks
If you are like many modern attorneys, you store your client files digitally rather than in physical filing cabinets. While this certainly saves time and resources, it also leaves your sensitive client information vulnerable to cyber criminals. Even the strongest client data security measures aren't enough to block some savvy hackers.
These criminals know that lawyers are excellent targets for data breaches, ransomware attacks, and other types of cyber crimes. You store a significant amount of sensitive information digitally. If a cyber criminal were to get a hold of this data, they could ask for a steep sum of money in exchange for returning it. They know that many law firms have the means to pay and are willing to do so.
With cyber liability coverage, you don't need to worry about ransom payments coming directly from your revenue. Your insurance provider will pay for these costs under the terms of your policy.
Cyber Insurance Pays for Direct Costs Associated With an Attack
Cyber attacks can be expensive. Small businesses pay anywhere from $120,000 to $1.24 million on average to recover from one, while larger companies pay an average of $4.88 million. These are costs you can't budget for, and they arise when you are least expecting them.
With comprehensive cyber insurance for lawyers, you can rest assured that a cyber attack would not drain your capital. These policies pay for the direct costs associated with a cyber breach. Whether you need to close down your firm for a few weeks while you recover or replenish funds you paid as ransom to a hacker, your cyber policy will ensure that such an attack does not wreak havoc on your firm's finances.
Cyber Insurance Helps Protect Your Reputation
As a legal professional, you may be under stronger consumer scrutiny than other types of professionals. Clients expect you to safeguard their personal data and meet the highest standards of ethics and professionalism.
While you can't always control whether you will fall victim to a data breach or cyber attack, you can control how you respond. Cyber insurance for lawyers gives you the funds and resources to restore your reputation with current and future clients. Many policies include crisis management, providing access to PR experts who can help you communicate with clients effectively and restore your image.
Seek Cyber Liability Insurance From Gilsbar
If you are ready to purchase cyber insurance for lawyers, Gilsbar can help. We connect clients with a range of professional liability insurance policies and can help you protect your firm against legal malpractice claims and steep recovery costs.
Contact us today at (985) 892-3520 to request a quote, then learn more about us and our diverse law firm risk management solutions.